Main reasons to commence your Kilburn lease extension

Top reasons for lease extension now:

A Kilburn lease depreciates with the years remaining on the lease.

Unfortunately that a Kilburn residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Kilburn property market.Where your lease has approximately ninety years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below eighty years - otherwise a higher premium will be payable. Most leasehold owners in Kilburn will be able to extend under the legislation; however a conveyancer should be able to confirm whether you are eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your conveyancer from beginning to end of the process.

An extended lease has roughly the same value as a freehold

Leasehold properties in Kilburn with over 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.

Banks and Building Societies may decide not to lend with a short lease

Banks and building societies are making their criteria more stringent and a meaningful number now want flats to have at least sixty if not seventy years remaining at the end of the mortgage. Given that a number of flats in Kilburn were created in the 1950s, 1960s and 1970s as a result many now need to be extended if they wish to get a mortgage.

Why use us for your lease extension in Kilburn?

Lease extensions in Kilburn can be a difficult process. We recommend you get professional help from a conveyancer and valuer with experience in this area.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Kilburn lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Kilburn Lease Extension Case Studies:

Joseph, Kilburn, North London,

Joseph was the the leasehold proprietor of a studio flat in Kilburn on the market with a lease of a little over 59 years remaining. Joseph informally spoke with his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 yearly. No ground rent would be due on a lease extension were Joseph to exercise his statutory right. Joseph obtained expert advice and was able to make an informed judgement and handle with the matter and ending up with a market value flat.

Kilburn case:

Dr Aaron Bernard moved into a basement flat in Kilburn in November 2011. The dilemma was if we could shed any light on how much (approximately) price could be to prolong the lease by ninety years. Similar premises in Kilburn with an extended lease were in the region of £189,000. The average amount of ground rent was £55 invoiced yearly. The lease elapsed in 2077. Given that there were 53 years unexpired we approximated the premium to the landlord for the lease extension to be between £28,500 and £33,000 plus costs.